2009 Program Profile & Highlights of Results from “T he Best” for Ontario Library Association “S uperConference”

1. Best Small-Medium Employers in Canada Program 2009 Program Profile & Highlights of Results from “The Best” for Ontario Library Association “SuperConference” Einar J. Westerlund 23 January, 2009

2. Today’s Discussion • Background & profile of the program • The Engagement concept • Best Employer Engagement results • Engagement model • Where “The Best” Exceed “The Rest” • How do participants identify their best opportunities for change? • “The journey” • Wrap up

3. About the Program • Evolved out of more than three decades of survey experience • Larger organizations’ study now in 10th year • Best Small-Medium Employers (BSME) study now in 5th round • Program is a joint effort partnering Queen’s School of Business, Hewitt Associates, and Globe & Mail Report on Business • Need at least three years of operations to qualify • High standards for required participation rates • Key ingredient: Rankings based on employee opinions • Participation with complimentary report is free • Numerous options for purchase of more detailed data

4. Why do organizations typically participate? From their feedback, current and past participants tell us they participate for a variety of reasons. Most typically, they do so to: • Take the pulse of their workforce and how it is seen to be managed • Identify their strengths and weaknesses as employers • Compare themselves against related benchmarks (“Best,” “Average,” “Industry,” etc) • Spot opportunities for improving their management of human resources • Spot opportunities for improving their operations • Check out alignment of views up and down, and across the hierarchy • Verify impact of recent/past organizational initiatives • Ramp up their capacity to attract, develop, and retain key talent • “Make the list of The Best”

5. Participation • Larger organizations = >400 employees; SME’s = 50-400 • 250+ SME’s registered to participate this past year • 150+ went through the complete measurement process • 100+ qualified for ranking in the Queen’s/Hewitt/Globe study • 150,000+ employees went on line to record their views (combined larger organizations and SME’s) • 3 year “rolling database” (largest in Canada) includes views representing about 900,000 Canadian workers • 60+ industry/sector/demographic comparison benchmarks available

6. Organization Results Chain People Work/Values Opportunities RetentionTalent AttractionProductivity Work EnvironmentFactors Employee Engagement OrganizationalResults Service DeliveryShareholder ReturnCash Flow/Growth Quality of LifeHR ProceduresTotal Rewards Say-Stay-Strive

7. 1= Strongly Disagree 6= Strongly Agree Somewhat Engaged ≥2.5 and <4.5 Engaged ≥4.5 Non-Engaged<2.5 What is “Engagement?” • Concept researched and developed over many years of “hands-on” client work in Canada and around the world • We define in very specific behavioural terms • Not about “happiness,” “loyalty,” “satisfaction,” or “positive ratings” of workplace conditions alone • A measurable state of emotional and intellectual involvement or commitment of the workforce to organizational success • Central determinant of ranking in our Best Employers studies • Each employee’s level of engagement depends on their average score on the six engagement questions

8. What is an Engaged Employee? • An engaged employee is one who willingly self-describes him/herself as exhibiting three key sets of behaviours • Best Employers—those with highly engaged employees—have people on board who, according to measurements taken: • Speak positively about the organization to co-workers, potential employees, and customers(We call this the Say element) • Have an intense desire to be part of the organization (We call this the Stay element) • Exert extra effort and are dedicated to doing the very best job possible to contribute to the organization’s business success (We call this the Strive element)

9. The Top 25 for 2009A diversified cross-section of S-M-E Employers from coast-to-coast Protegra Miele Ltd. Gibraltar Solutions Inc. ISL Engineering and Land Services Hood Group Solutions 2 Go DRN Commerce Inc. PDL Contact Centres Ltd. Benefits by Design Inc. Healthtech Inc. The Personnel Department National Leasing Group Inc. Bioniche Life Sciences Inc. Birchwood Automotive Group Canada Foundation for Innovation DCFS Canada Corp. Payworks Inc. Globalive Communications Corp Adfast Corp. Adera Development Corporation Steward Weir Co. Ltd. Wakefield Canada Inc. I Love Rewards Ozery’s Pita Break Rare Method Interactive

10. Productivity • Less sick time • Fewer lost days due to accidents • High performance culture • Employees more focused on future direction and strategies High performance culture Why being a Best Employer should be important to you • Studies show that high engagement can lead to: • Attraction & Retention • Lower turnover • More unsolicited applications for employment • Financial Success • Greater financial returns • Greater growth • Greater customer satisfaction • High Morale • Higher employee morale and sense of accomplishment • Greater alignment among leaders and between leaders and employees • Greater employee alignment withvalues and workplace culture

11. Levels of Engagement

12. Six Key Engagement Questions • (Say 1) “I would, without hesitation, highly recommend this organization to a friend seeking employment” • (Say 2) “Given the opportunity, I tell others great things about working here” • (Stay 1) “It would take a lot to get me to leave this organization” • (Stay 2) “I hardly ever think about leaving this organization to work somewhere else” • (Strive 1) “This organization inspires me to do my best work every day” • (Strive 2) “This organization motivates me to do more than is normally required to complete my work”

13. Engagement Scores Breakdown % Positive Perception Say 1 Say 2 Stay 1 Stay 2 Strive 1 Strive 2

14. Comments on Engagement • Average levels required to rank as one of “The Best” relatively little changed over a decade • No advantage to “size” one way or the other: Engagement average for “The Best” is identical in both larger entities and SME’s • Highest Engagement typically seen is in the low 90% range • Lowest Engagement typically seen is in the low 30% range • >65% Engagement qualifies as being in “Best Employer Zone” • 46-64% Engagement reflects those “Taking the Journey” • <45% Engagement signifies need for major rethink of human resources management approaches • “The Best” demonstrate greatest relative strength in the “Stay” category of behaviours

15. Looking at the SME survey results through thetraditional Hewitt Best Employers framework:The Engagement Model

16. The Engagement Model • Showing the 18 Engagement Driver areas and 6 work environment categories identified as having the highest impact on engagement

17. Engagement Drivers Comparison—The Best vs. The Rest Where The Best show their greatest relative strength • Recognition I receive adequate recognition (beyond pay and benefits) for my contributions and/or accomplishments • Managing Performance The way we manage performance here keeps me focused onachieving this organization’s goals • Career Opportunities My future career opportunities here look good • Organizational Reputation This organization is considered one of the best places to work for someone with my skills and experience • Pay My pay is appropriate for the role I have in this organization • Senior Leadership I see strong evidence of effective leadership from senior leaders

18. Where The Best show their greatest relative strength % Positive Perception Recognition Managing Performance Career Opportunities Organizational Reputation Pay Senior Leadership

19. Engagement Drivers Comparison—The Best vs. The Rest Where The Best show considerable strength • Resources The tools and resources I have allow me to be as productive as possible • People/HR Practices Our people/HR practices create a positive work environment for me • Employee Health & Well-Being This organization strongly supports employee health and well-being • Work Processes The work processes we have in place allow me to be as productive as possible • Learning & Development This organization strongly supports the learning and development of its employees • Benefits/Retirement Savings Overall my benefit and retirement savings plans meet my (and my family’s) needs well

20. Where The Best show considerable strength % Positive Perception Resources People/HR Practices Employee Health & Well-Being Work Processes Learning & Development Benefits/Retirement Savings

21. Engagement Drivers Comparison—The Best vs. The Rest Where The Best and The Rest score the closest • Work Tasks I truly enjoy my day-to-day work tasks/activities • Manager My manager provides the support I need to succeed • Work/Life Balance The balance between my work and personal commitments is right for me • Intrinsic Motivation I get a sense of accomplishment from my work • Co-Workers My co-workers respect my thoughts and feelings • Physical Work Environment The physical work environment is appropriate for the kindof work I do

22. Where The Best and The Rest Score the Closest % Positive Perception Work Tasks Manager Work/Life Balance Intrinsic Motivation Co-Workers Physical Work Environment

23. How would libraries likely fare on Engagement Drivers? SME library staff scores compared with avg. SME’s in Canada: Likely More Favorable Likely Less Favorable Pay Career Opportunities Organizational Reputation Physical Work Environment Work Tasks Managing Performance Intrinsic Motivation Learning & Development Work/Life Balance Senior Leadership Manager Recognition

24. What else, overall, do Best Employers do better than The Rest? Employees see them as value-driven and valuing their people % Positive Perception • I am treated like a valued member of this organization • We hold each other accountable for living by our employer’s values • Senior leaders treat employees as the organization’s most valuable asset • Senior leaders consistently demonstrate our organization’s values through their behaviour and actions • Employees are treated as important contributors, rather than as a cost of doing business • I feel like I “fit in" well here

25. What else, overall, do Best Employers do better than The Rest? Employees see them as handling “workforce management”basics well % Positive Perception • In our organization we are attracting the people we need to achieve our organization’s goals • Our people/HR practices support our organization’s culture • My manager effectively implements and supports our people/HR practices…and • ..consistently implements and supports these • In our organization we are keeping the people we need to achieve our organization’s goals • In our organization we are promoting the people who are best equipped to meet the future demands we face here

26. What else, overall, do Best Employers do better than The Rest? They communicate to build employee understanding in key areas, such as: % Positive Perception • Their pay programs • Learning & development/career opportunities • Programs available to help individuals maintain/improve their health • How their performance, as employees, is managed • How the organization recognizes people • What they need to do to help their employer meet its goals

27. What else, overall, do Best Employers do better than The Rest? Employees see them as going a good job of listening & responding % Positive Perception • At work, my opinion counts • I am appropriately involved in decisions which affect my job • My manager does an excellent job of addressing employee questions or concerns • My co-workers value my input even if it is different from their own • Senior leaders deliver on the promises they make to employees

28. Where are the best opportunities for improving engagement? • Many places to look e.g. Us vs. “Best” Us vs. industry averages Us vs. database average • Lower (absolute) scores not always reliable indicators of highest leverage priorities for change/improvement • Precise mix of drivers and sub-drivers with highest impact is unique to each individual organization • Special statistical analysis technique called predictive modeling (or “Impacts Analysis”) can be very helpful • Projects which drivers, workplace factors offer the greatest upside potential as well as downside risks for impacting engagement

29. Top Engagement Driver Opportunities at Organization XYZ Impact on Engagement • Managing Performance • Senior Leadership • Organizational Reputation • Work Processes • Recognition • Career Opportunities

30. Sampling of Individual Item Opportunities at Organization XYZ Impact on Engagement • The way we manage performance does a good job of identifying my strengths and improvement areas (Managing Performance) • The way my performance is measured makes sense to me (Managing Performance) • My manager effectively deals with poor performance in our (Managing Performance) • Senior leaders make me feel positive about the future of our organization (Senior Leadership) • Senior leaders treat employees as our organization’s most valuable asset (Senior Leadership) • Senior leaders deliver on the promises they make to employees (Senior Leadership)

31. The Best Employer Journey Journey – 57% Rethink – 39% Maintain – 75% 2008 Best Employers (77%) 2008 “The Rest” (56%)

32. Our overall counsel to this audience • Secure commitment from key decision-makers in your organization to participate in this year’s Queen’s/Hewitt “Best Employers in Canada” study • Let’s get moving on establishing a “libraries benchmark” set of data focusing on your particular service segment! • Register any time! • Examine and choose from among numerous options about which sub-groups/units you’d like to track within your organization • Organize your staff members early to prepare them for their participation when the survey goes “live,” on-line, in June, 2009 • Later, select the reports you’d like to receive • Take advantage of the free training offered in how to build, in-house, your own customized feedback reports from your (optional) personalized web-site • Your complete feedback data will be available beginning early in September, 2009

33. Contacts and Coordinates business.queensu.ca/qcbv/sme Einar Westerlund877 955 1800 – Queen’s toll free Sandra Olszowka 613 533 3119 – Sandra direct line Queen’s School of Business416 461 3258 – Einar direct line Centre for BusinessEWesterlund@business.queensu.ca Venturing SOlszowka@business.queensu.ca